Santos Brasil Participações (STBP3) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, with net revenue up 36% and EBITDA up 46.9% YoY, driven by strong container throughput and expansion of key assets.

• Tecon Santos reached 2.6 million TEUs capacity, with plans to reach 3 million by 2026; Liquid Bulk Terminals doubled capacity to 110,000 m³, targeting 190,000 m³ in 2025.

• Distributed R$741.9 million in dividends and JCP, reflecting a 100% payout.

• Entry into the Bovespa Index and 69.4% share appreciation in 2024 highlighted capital market recognition.

• Advanced ESG initiatives, including Net Zero by 2040 strategy, ISO certifications, and diversity programs.

Financial highlights

• Net revenue reached R$2.9 billion (+36% YoY); EBITDA was R$1.5 billion (+46.9% YoY), margin 50.6%; net income was R$742 million (+47.1% YoY), net margin 25.6%.

• 4Q24 net revenue was R$790.7 million (+18.5% YoY); EBITDA R$404.0 million (+10.2% YoY), margin 51.1%.

• Net debt at year-end was R$2.0 billion; leverage at 1.54x Net Debt/EBITDA.

• CAPEX totaled R$731.1 million, focused on terminal expansion and modernization.

• R$2 billion raised via 5th debenture issuance; R$1.6 billion capital reduction distributed to shareholders.

Outlook and guidance

• Tecon Santos targets 3 million TEUs annual capacity by 2026; Liquid Bulk Terminals to reach 190,000 m³ in 2025.

• Focus on expanding integrated logistics, scaling liquid bulk operations, and maintaining leadership in container handling.

• Management anticipates robust and sustainable future cash generation, aiming to reduce leverage.

• CMA CGM Group's pending acquisition may trigger a public tender offer for all outstanding shares.

• Positive long-term sector outlook driven by increased containerization and infrastructure modernization.